Gazzata-1 Italian Exploration

RNS Number : 8272K

Ascent Resources PLC

29 December 2008

 



Ascent Resources plc / Epic: AST / Index: AIM / Sector: Oil and Gas

29 December 2008

Ascent Resources plc ('Ascent' or 'the Company')

Gazzata-1 Italian Exploration Well Update

Ascent Resources plc, the AIM-traded oil and gas production and exploration company, has been requested by Otto Energy Limited ('Otto'), its farm-in partners in the Cento-Bastiglia exploration permits in Italy's prolific Po Valley, not to commence the drilling of the Gazzata-1 well before mid-March 2009, subject to rig availability.  However in the meantime, Otto is forwarding the funds for long lead-time equipment and drill site construction which will commence in due course.

This is the second request from Otto to delay the drilling of the Gazzata-1 well due to problems they are experiencing with their production from the Galoc field in the Philippines.  Otto is to earn a 50% working interest in the Cento-Bastiglia permits via funding 100% of the cost of Gazzata-1 and, if successful, the cost of a second well.

The Gazzata-1 well, which targets a large Pliocene gas exploration prospect at a depth of c 2,400 m, will be drilled by the Perazzoli HH200 rig which is 22.5% owned by Ascent. This rig is currently drilling for another operator in Italy.

Ascent Managing Director Jeremy Eng said, 'Otto have already expended over €2 million on the Gazzata-1 project and have now committed to the construction of the drilling site.  Although this delays the exploration drilling, it is unlikely that there will be any further delays to the project'

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For further information visit www.ascentresources.co.uk or contact:

Jeremy Eng	Ascent Resources plc	Tel: [phone]
Hugo de Salis	St Brides Media & Finance Ltd	Tel: [phone]
Victoria Thomas	St Brides Media & Finance Ltd	Tel: [phone]
Max Hartley	Cenkos Securities plc	Tel: [phone]
Daniel Fox-Davies	Fox-Davies Capital Limited	Tel: [phone]

Notes:

Ascent Resources plc has a diversified portfolio of some 20 hydrocarbon exploration and development projects across five countries in Europe: Italy, Switzerland, Hungary, Slovenia and Netherlands. Ascent's portfolio contains a solid base of field redevelopment projects with selected exposure to exploration upside. The portfolio is focussed on gas and with the exception of the shallow water Netherlands project, all of its projects are located onshore where operating and development costs are substantially lower than they are offshore. In October 2008, Ascent agreed with San Severina Holdings SA, a Swiss based investment company, to establish an oil and gas asset management joint venture. The joint venture will acquire minority interests and providing investment funding for producing and development or appraisal stage oil and gas projects.

 

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